factual

When does the Refresh cycle for Embassy Suites' Authorized Equipment begin?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

Under HSS's refreshment program, Customer will be responsible for and will pay for all fees and costs for the replacement or refreshment of the Authorized Equipment in HSS's sole discretion ("Refresh") on an approximate three (3) year cycle, starting approximately three (3) years after the initial shipment of such Authorized Equipment and for the provision of maintenance services by the Preferred Provider on such refreshed equipment.

Customer's Refresh will be timed to occur prior to the end of the three (3) year cycle.

If Customer fails to meet HSS's timeline for such Refresh, including order dates for equipment and software, Customer will be responsible for all fees and costs incident to such delay, including, but not limited to, any rent extension costs on Network Authorized Equipment and higher fees and costs for equipment maintenance and software maintenance.

Source: Item 23 — RECEIPTS (FDD pages 97–305)

What This Means (2025 FDD)

According to Embassy Suites' 2025 Franchise Disclosure Document, the refreshment program for Network Authorized Equipment involves replacing or refreshing equipment at Embassy Suites' discretion. This typically occurs on an approximate three-year cycle, starting about three years after the initial equipment shipment. However, Embassy Suites times the Refresh to occur before the end of this three-year cycle.

If an Embassy Suites franchisee fails to meet the timeline for the Refresh, including order dates for equipment and software, they will be responsible for all associated fees and costs. These costs may include rent extension costs for Network Authorized Equipment and higher fees for equipment and software maintenance.

This means that Embassy Suites franchisees need to be prepared for equipment replacement costs starting three years after the initial equipment installation. Franchisees must also adhere to Embassy Suites' timelines to avoid additional expenses related to delays in the Refresh process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.